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Mises Wire

Nasty GDP Report

GDP grew by only 1/10 of 1% in the first quarter. There were big negative reversals in both exports and equipment purchases from the 4th quarter of last year. The accumulation of inventories also was reduced, but is still accumulating rapidly indicating less of a need to add inventory in future quarters. Consumption grew at a 3% rate, but this was largely driven by a nearly 10% jump in health care spending, that was probably driven by the Affordable Care Act. The saving rate is also reported to be "unusually low." The only bright spot in the report was that government spending was down for the quarter.

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The Mises Wire —the Mises Institute's Blog—offers short, contemporary news and opinion from our scholars and associated personnel. Check back often for the latest commentary on Austrian economics and libertarian political economy.

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